The Culture of Collaboration

BusinessWeek.com Launches Collaboration Column

Internal competition wreaks havoc in organizations, compromising collaboration and reducing value. The cost is often hidden, but it can be significant. That’s why my first column on collaboration for BusinessWeek.com focuses on internal competition. The column is part of the site’s Management section, which offers actionable business information. So my column offers 5 ways that leaders can reduce internal competition.

Check out “The Hidden Cost of Internal Competition” on the BusinessWeek.com site.

Cisco's John Chambers: the Hardest Part is the Culture

I was watching Cisco CEO John Chambers do his trademark walk-and-talk style keynote yesterday at the Hilton San Francisco Union Square as Cisco was kicking off its Collaboration Summit when suddenly John interrupted his pitch for collaboration.

 

“Do you know what the hardest change is in this?” he queried the audience rhetorically. “As any CEO will tell you, it’s the culture.”

 

John’s observation resonated with me in that the fundamental premise of The Culture of Collaboration book is that “without a culture of collaboration, the best processes, systems, tools and leadership strategies fall flat.” In the book, I also note that “the overwhelming reason why collaboration eludes organizations involves culture.”

 

Understanding the role of culture in creating a collaborative enterprise is paramount, particularly as Cisco introduces 61 collaboration products. Collaboration tools are key enablers, but they are far more effective in enabling collaboration in enterprises with collaborative cultures and processes.  Cisco has been focusing on collaboration more than any other initiative as an organizational imperitive and in product efforts. Now the company is fixated on persuading customers that it has reached a milestone in innovating collaboration. With that in mind, Cisco vice president of enterprise solutions Alan Cohen, a history buff and blogger, noted that Cisco was announcing its slew of products on the 20^th anniversary of the Berlin Wall’s fall and observed that it was one of the “biggest transitions in our history.”

 

As Tony Bates, Senior Vice President and General Manager of the Enterprise Group, highlighted Cisco’s major product introductions, he emphasized the increasing role of video in collaboration—from Flip Video camcorders to WebEx web conferencing to telepresence—and the interactivity of these tools. You can read details of the product announcements here.

 

At a cocktail party following the keynotes, Tony and I had an engaging conversation about how the role of video has evolved. I mentioned that when I was researching my first book, Personal Videoconferencing, in the mid-1990’s, there was considerable push back against real-time video as a viable business tool. People were scared of the camera, and there was a pervasive view that one needed to have highly-honed presentation skills to use videoconferencing. Tony observed that people are increasingly accepting that the way they conduct themselves in meetings and in one-on-one workplace interactions is good enough for many video interactions.

 

Currently, most telepresence and web conferencing interactions are scheduled. As organizational cultures evolve to support more real-time collaboration, video interaction will become more spontaneous. Then real-time video will transcend communications and become part-and-parcel of collaboration. 

Replacing ROI with Return on Collaboration?

Yesterday I had a compelling discussion with Alla Reznik, director of global voice and collaboration for Verizon. Alla is from Russia, and she’s the only U.S.-based marketing professional I know who can provide input on the Russian language edition of The Culture of Collaboration book published by Ecom of Moscow. Alla and I chatted about regional cultural differences in how people collaborate—and differences in how they respond to surveys.

 

It was a timely discussion, because today Verizon and Cisco are releasing a new study tackling return on investment (ROI) for collaboration expenditures. ROI has long frustrated collaboration tools vendors, because of the difficulty in quantifying “soft” benefits such as corporate reputation. The research, conducted by Frost & Sullivan, identifies a model for measuring what it calls return on collaboration (ROC).

 

ROC measures the impact of collaboration on key functional areas. These include research and development, human resources, sales, marketing, investor relations, and public relations. Traditional ROI measures money gained or lost on an investment. In contrast, ROC tracks the amount of “improvement” derived from a financial investment in collaboration. The study identified research and development, sales and marketing as the functional areas with the highest ROC.

 

The study called “Meetings Around the World 2: Charting the Course of Advanced Collaboration” is based on questionnaires completed by 3662 information technology and line-of-business decision makers in 10 countries. Respondents represented enterprises plus small and medium sized businesses. Nearly half the organizations are using unified communications and collaboration tools ranging from enterprise instant messaging to Cisco TelePresence. Among the study’s key findings is that collaboration is more than twice as important as strategic orientation and six times more important than market factors in determining business performance.

 

 

“The world has changed quite a bit since 2006,” according to Alla, who was referring to the 2006 study dubbed “Meetings Around the World 1.” This earlier study determined that collaboration fuels business performance and that collaboration capability is based on technology, culture and structure. The new study indicates that culture and structure are even more important to collaboration than they were in the previous study conducted in 2006.  The point is that collaboration technology makes the most difference in organizations with collaborative cultures and structures. Similarly, the fundamental premise of The Culture of Collaboration book is that maximizing time, talent and tools to create value requires collaborative culture.

 

The main purpose of the study is to convince business decision makers to invest in collaboration tools and technologies.  One conclusion is that a $1 million investment in collaboration tools and technologies will deliver a $4 million dollar “improvement.” However, this result apparently fails to consider whether the organization has adopted a collaborative culture. I would argue that a $1 million investment by an organization with a collaborative culture will produce greater results than the same investment by an organization with a command-and-control, internally-competitive culture. So while the study does highlight the role of culture and structure, more work is necessary in integrating these elements into measuring ROC.

 

The big question for Verizon and Cisco is whether CFO’s, CIO’s and business decision makers will accept ROC. “We’re curious ourselves,” Alla told me. While there’s work to do in proving the value of collaboration, ROC is an important step towards evaluating the return on collaboration investment.

Empathy and Collaboration: What's the Link?

Are empathic people more likely to collaborate? Or are collaborators more likely to empathize?

 

Dev Patnaik, author of Wired to Care, and I tossed around these and other questions during an engaging discussion this afternoon. “Collaboration allows for empathy and creativity to occur” is Dev’s view. We can argue this chicken-or-egg question either way, but the point is that empathy and collaboration are fellow travelers. While I argue in The Culture of Collaboration book that collaborating creates value, Dev argues that empathy makes money for companies.

 

Almost everything in business has become data-driven. The thinking is...if you can’t measure it, it doesn’t matter. Even traditionally less data driven disciplines such as public relations have become more numbers-oriented. Data certainly provides valuable insight, but it doesn’t tell the whole story. After all, the road is littered with businesses that have used numbers—real or manufactured—to hide destructive practices. Bernie Madoff, who’s not exactly a poster boy for empathy, comes to mind.

 

I’ve been noticing recently some cracks developing in this data-obsessed foundation on which we build and grow businesses. Clearly, Dev’s antenna is up, and he’s noticing something similar. Dev likens the shift to the change in painting (canvases, not houses) that occurred after the adoption of the camera. Expressionism replaced realism.

 

According to Dev, we’re moving into the “abstract expressionist phase of management.” It’s no longer enough to be a great numbers person. We’re now expecting more of our leaders, and empathy and collaboration are among those qualities. Because a collaborative organization creates greater value, there’s an increasing role for collaborative leaders. And the same is true for empathy.

 

Understanding the feelings of others is good behavior, but empathy particularly pays off when companies—that is the people who work for companies-- understand what their customers are feeling. And in Wired to Care, Dev deftly weaves into his narrative numerous examples—ranging from Harley-Davidson to Nike—of companies that have achieved impressive results through empathy.

 

Dev asked me about the relationship between empathy and collaboration, and I’ve been thinking more about it since we talked. The strongest link is that both qualities involve focusing less on self and more on others. The opposite of collaborative behavior is internally-competitive, command-and-control behavior. This is a form of self absorption. Another form of self absorption is lack of understanding how others feel.

 

While reading Dev’s book, I wondered whether its author is empathetic. So I asked him. “I’m not a very empathic person,” Dev insisted.  That struggle with empathy, though drives Dev’s interest in the topic. He points to the reputation of Apple CEO Steve Jobs as technologically-challenged. Jobs and Apple are ideally suited to sort out usability, Dev argues, because of this struggle. It’s not exactly analogous, but I take Dev’s point. And at the risk of treading into blurb-like territory, Wired to Care will make you think and act differently.

Collaboration Curing Multiple Sclerosis

It was definitely unorthodox. Many said it was impossible. But it looks like The Myelin Repair Foundation has done it. MRF, which is working on curing multiple sclerosis, is about to meet its ambitious goal of licensing a discovery for commercial drug development within five years. Through a collaborative research model, the Silicon Valley-based foundation has reduced drug development time from 15 years to 5 years. MRF is negotiating with a biotech company and believes a license agreement is in the works.

 

Intuit Founder Scott Cook, a foundation supporter, suggested I research MRF when I was writing The Culture of Collaboration book.  In the book, I tell the story of how Scott Johnson, who has MS, learned that a cure was taking three or four times as long because of competition among researchers. This prompted Johnson to rethink the culture of medical research and begin changing that culture. Scientists often refuse to share data and information, because they compete for limited grant money and for publishing articles in top medical journals. The answer was to get experts in different disciplines to collaborate. So Johnson raised money, ultimately plowed $20 million into drug discovery work, and built a collaborative medical research foundation.

 

Johnson brought in fellow tech start-up veteran Russell Bromley as chief operating officer. And Johnson and Bromley recruited five principal investigators who head labs.  They proposed a level of collaboration for curing disease that none of the scientists had ever experienced. Their focus was to repair myelin, the sheath that surrounds the nerves, which MS damages. Johnson and Bromley with input from the researchers developed a Collaborative Research Process, which addresses everything from tools to incentives.

 

Since its founding in 2004, MRF has advanced work towards a cure for MS beyond anything anybody else had imagined within this timeframe. “Because of our work, we have a much clearer understanding of how to drive neural stem cells to the site of myelin damage in the central nervous system and instruct the myelin-producing cells to remyelinate,” Johnson writes in his recent president’s message.

 

The Myelin Repair Foundation’s game-changing collaborative approach sets a new standard for medical research. The broader medical research community should sit up and take notice that collaboration among researchers creates greater value than competition.

 

Kaiser’s Garfield Center Enhances Innovation, Collaboration

With the growing use of tools enabling collaboration at a distance, it’s easy to forget the value of same-room collaboration and the role of the physical workplace environment. Environment—both physical and virtual-- is one of the Ten Cultural Elements of Collaboration that I identify in The Culture of Collaboration book.

 

It’s essential to bring collaborative capabilities to people so that collaboration becomes integrated with work styles. Forcing people to walk down the hall or go someplace to collaborate falls short. Therefore, it may seem counter-intuitive that dedicated collaborative spaces not only enhance collaboration, but also are crucial components of collaborative organizations.

 

Our research at The Culture of Collaboration® Institute shows that the most collaborative organizations integrate dedicated collaborative spaces into work flow. The distinction is that these physical spaces are by no means the primary means of organizational collaboration. In some cases, dedicated collaborative spaces bridge physical and virtual environments by including geographically-dispersed team members through telepresence or videoconferencing.  

 

Yesterday, I had the opportunity to explore one such dedicated collaborative space. From the outside, Kaiser Permanente’s Sidney R. Garfield Health Care Innovation Center looks like a warehouse. In fact, it’s a former check processing center in an industrial park in San Leandro, California. On the inside, the Garfield Center is anything but ordinary. The future of healthcare delivery is unfolding in this 37-thousand square foot laboratory. The Garfield Center includes multiple environments ranging from patient room prototypes to homes outfitted with monitoring and telemedicine technologies.

 

There are lots of gee-whiz technologies and environments including a concept operating room in which researchers are testing tools including augmented virtual reality. But what’s most significant about the Garfield Center is that people from across Kaiser regardless of level, role or region come together to brainstorm, innovate and collaborate. Doctors and nurses partner with architects and technologists to create prototypes for patient care in this “touchdown location for innovation work” as Sherry Fry, operations specialist for the Center, describes it. Anybody at Kaiser can use the facility as long as the activity is interdisciplinary. “The Garfield Center has become synonymous with innovation at Kaiser,” notes Dr. Yan Chow, associate director of innovation and advanced technology for Kaiser Permanente.

 

In developing the 3-year-old Garfield Center, Kaiser researchers studied models outside healthcare, notably the McDonald’s Innovation Center near Chicago. Kaiser also studied Mayo Clinic's S.P.A.R.C. unit, which I describe in my book. S.P.A.R.C. stands for See Plan Act Refine Communicate. Through S.P.A.R.C., Mayo assembles cross-functional collaborators to conduct live prototyping of healthcare service delivery.

 

The value of dedicated collaborative spaces is that they help break down barriers among silos. As doctors engage architects and facilities people brainstorm with technologists, ideas become prototypes which ultimately deliver measurable value.

Constructive Confrontation at the Clinton Library and Museum

When I’m on the road, I keep my eyes open for collaboration insights.

 

This week I was in Memphis and made a detour to Little Rock. In Memphis, I stayed at the Peabody Hotel, the grand old hotel of the south famous for the daily parade of ducks from the hotel roof to the fountain.  The site of several ducks marching in formation through the hotel lobby certainly requires coordination and arguably collaboration.

 

Here in Little Rock…I’m staying at the Capital Hotel, which has an elevator big enough to supposedly have accommodated Ulysses Grant and his horse. Also, the Capital serves one of the best hotel breakfasts I’ve ever eaten. Everything is made from scratch! All of this in a gorgeous, old-world dining room.

 

Back to collaboration. Regardless of politics and how you may feel about Bill Clinton, any leader would do well to take note of Little Rock’s favorite son and his thoughts about hiring, culture, and decision-making:

 

“I don’t care how smart you are…” Bill Clinton’s voice boomed into my audio tour headset at the William J. Clinton Presidential Library and Museum. “Success and failure depends on how well the staff and cabinet debate honestly and openly and then unite once you’ve made a decision. “

 

I was standing in the replica of the White House cabinet room, and President Clinton was setting the scene for the debates that occurred in that room on his watch as the 42^nd President of the United States. “You never can tell when somebody who’s in an unrelated agency will have a really keen insight…thinking people, caring people who came from all different backgrounds from all over America.” Amen! Cross-functional collaboration!

 

President Clinton was essentially talking about constructive confrontation, one of the Ten Cultural Elements of Collaboration that I identify in my book, The Culture of Collaboration. To effectively collaborate, the culture of any organization—whether it’s the federal government, a large enterprise, a non-profit, or a small business—must encourage debate and constructive confrontation regardless of level, role or region. 

 

Constructive means that the confrontation is about making a better decision rather than personality conflicts or posturing. At some point, debate ends and an organization coalesces behind a united position.  Smart organizations encourage debate as President Clinton did among his staff and cabinet rather than blind agreement with the boss.

The Clinton Library and Museum includes a replica of the Oval Office as it was when President Clinton occupied it. According to the staff, the former President often moves objects around or borrows them during his monthly or bi-monthly visits to the Library (he has an apartment upstairs with room for his secret service agents). 

 

The docents tell me that President Clinton knows them all by name and is closely involved in almost everything that happens at the Library. I spoke at length with one docent, Jane Cazort, whose father-in-law was lieutenant governor of Arkansas and whose granddaughter went to school with Chelsea Clinton.

 

Coincidentally, next week I’ll be attending the Fortune Brainstorm: Green 2009 conference in Laguna Niguel, California at which President Clinton is speaking.  More on that later.

Collaborating out of the Downturn Focus of Blog Talk Radio Interview

I discussed collaboration with Zane Safrit yesterday morning on his hour-long Blog Talk Radio show. You can listen to the show here.

 

When he was CEO of Conference Calls Unlimited, Zane masterfully used blogging as a marketing and business tool. His small company, based in a rural Iowa community, adopted collaborative culture and tools as an advantage in a marketplace saturated with large players. Zane is a super-capable, collaborative leader.

 

Our conversation ranged from common denominators and motivators for companies wanting to adopt collaborative culture and the biggest mistakes companies make. We also discussed the need to replace star-oriented culture and the role of collaboration in an economic recovery.

 

Zane asked me how companies can balance the need for collaboration with the need for consistency, routines and procedures. It’s a thoughtful question that organizations should consider. I explained that it’s necessary to include collaboration in policies and procedures, so that people are consistently collaborative J.

 

Towards the end of the show, we focused more on the economy. Zane asked me about the biggest trends regarding collaborative culture over the next two years. Here’s what I said:

 

People are going to realize what collaboration is and what it isn’t, and I absolutely believe that collaboration will help deliver us from the downturn. We need to abandon the herd mentality. I blogged about this on March 15, 2009 with a call to action. You can read the post here.

 

There’s a misconception that collaboration is about running with the herd. Real collaboration involves constructive confrontation….coming together to hash out issues, make decisions, improve processes and develop products and services. And it’s much broader than companies. It’s about governments collaborating across agencies and departments, with citizens and with other governments. It’s about people working together to create value in our communities.

 

It’s about changing education so that we’re developing collaborators. The more educated people are, the more competitive they are. Our educational system beats collaboration out of us. That’s changing.

 

I’ve lived and worked in smaller communities where many people get jobs right out of high school. They’re used to working together to cook dinner at the VFW or help neighbors repair tornado damage. It’s this type of attitude that we need to nourish in our country, in higher education, in companies, in and among governments. Coming out of this downturn, star culture and internal competition are unaffordable. Collaboration will drive the recovery.

 

“How will that change our economy, culture, country?” Zane asked me.

I responded:

 

It’ll be back to basics…working together to create real value. The mortgage mess, the financial collapse were rooted in artificial value. We gave the keys to the country and the economy to star competitors… the best and the brightest who went to top schools and competed for themselves without considering the bigger picture. Now we need to entrust our companies, governments and communities to collaborators. And we’re going to build long-term, sustainable value.

Telepresence and Formality

Cisco’s use of TelePresence last Monday to announce its Unified Computing System sparked an interesting reaction on the New York Times Bits blog. The Times republished the blog post in today’s print edition.

 

The post by Ashlee Vance takes aim at Cisco for the “scripted” feel of the 14-site TelePresence session for reporters and analysts. You can read the story here. Some reporters who showed up at Cisco headquarters for a news conference were apparently frustrated that Cisco CEO John Chambers was in another suite upstairs rather than in the same room with the media. Vance also writes that the question-and-answer session that followed the two-hour event also felt scripted in that Cisco apparently muted microphones and prevented follow-up questions.

 

OK. It’s time for a discussion of formality and telepresence. First, let’s separate the event from the technology. I did not attend the event, so I can’t comment about its execution. However, I did participate in a launch event and news conference last October for Cisco’s public TelePresence suites. You can read about it in my October 15, 2008 post.

 

Like last Monday’s Cisco event, executives at the October 15, 2008 event were in a separate TelePresence suite from reporters and analysts who were in the same building. This worked well, because the local group was relatively small, and each participant had a seat at the TelePresence table. Also, the approach was particularly appropriate in that the subject of the event was TelePresence itself. During the event, which linked about six sites, I had no problem asking follow up questions and engaging in an extended dialogue with Cisco senior leaders.

 

In contrast, holding a 14-site news conference like the one last Monday certainly can increase logistical issues and reduce the question time per reporter. The benefit, though, of using TelePresence for the event is that it significantly increased media participation globally, so that a reporter in Asia could gain the same access as a Silicon Valley-based reporter for The New York Times—access to Cisco CEO John Chambers and other participating CEO’s including Paul Otellini of Intel, Joe Tucci of EMC, Paul Maritz of VMware, and Bill Green of Accenture.  

 

Despite increased access for geographically-dispersed journalists, there was clearly a disconnect between Cisco and at least some reporters who showed up at Cisco headquarters expecting a same-room news conference. Here lies the problem. Some reporters may have felt that Cisco was insensitive to their needs, and these reporters failed to grasp the benefits and potential of TelePresence. Consider the potential power of this tool…people coming together regardless of level, role or region and interacting in an immersive virtual environment that approximates across-the-table, same-room interaction. Some reporters missed this, in part because of formality.

 

This disconnect highlights the need to ensure that the use of telepresence mirrors in-person interaction and preserves in-person etiquette.  Reporters on deadline get restless and frustrated if they must wait two hours before asking questions, and they always want the option to ask follow-up questions. Otherwise, they feel controlled at best and muzzled at worst.

  

It would be unfortunate, though, if New York Times readers confused any concerns about event execution with the technology itself. The greatest potential for telepresence and TelePresence (the spelling with capital letters is Cisco’s brand of the technology) is for informal, spontaneous interactions. Currently, telepresence is used primarily for scheduled meetings and events. The most collaborative organizations use real-time, interactive video for on-the-fly encounters. I profile some of these organizations and describe specific ways companies can create value through informal, spontaneous interactions in my current book, The Culture of Collaboration.

 

Since the publication of my first book, Personal Videoconferencing (1996), my team and I have been conducting research on—among other aspects of collaboration— using visual communications for spontaneous, informal interactions. Recently, I formalized this research effort by establishing The Culture of CollaborationÒ Institute. My future books and derivatives will leverage the Institute’s research. If your organization is interested in supporting our work, let me know.

 

Organizational culture, environment and business processes are key to enabling spontaneity and informality. Tools including telepresence—used effectively—are critical enablers in extending and enhancing an informal, spontaneous culture. I highlighted the role of informality in collaboration during an interview with CNBC’s Donnie Deutsch on the “Collaboration Now” primetime special. You can view a video clip here.

 

Telepresence is a key element in collaborative enterprises and will soon become available at much lower price points for consumer use. Without informal, spontaneous uses of the tool, vendors run the risk that people will view telepresence as a tool only for formal, scheduled events and meetings. The real value of telepresence is enabling on-the-fly encounters, sort of a virtual water cooler.

Toyota's Collaborative Leadership Involves "See it for Yourself"

In selecting Akio Toyoda as its next president, Toyota is reaffirming its commitment to collaborative culture and methods. A key tenet of Toyota is genchi genbutsu which means "see it for yourself.” This is related to the leadership method practiced by HP’s David Packard and Bill Hewlett beginning in the 1940’s and later dubbed “management by walking around.” The idea is that to figure out what’s really going on in an organization, a leader needs to get out of the office, go to factories and loading docks and retail outlets, and get his or her hands dirty.

 

That’s exactly what Akio Toyoda did when he visited a Toyota dealership in Ann Arbor, Michigan last summer. He wanted to personally investigate a pickup truck recall. A story by Micheline Maynard on February 15, 2009 in the New York Times says Toyoda made a trip “so secret that Toyota’s public relations staff didn’t know he was here.” While at the dealership, he reportedly got down on his hands and knees to examine the undercarriage of a truck. At the news conference in January announcing his appointment, according to the Times, Toyoda announced he would pop up everywhere as he did in Ann Arbor.

 

Genchi genbutsu or “see it for yourself” fits squarely into collaborative culture and methods. However, it’s not always possible to fly across the world to see what’s happening. That’s where collaborative tools come into play. Through unified communications, we can find one other and connect regardless of level, role or region. We can escalate IM to voice, web conferencing or videoconferencing and spontaneously hash out problems and make decisions. Visual communications is a critical enabler. An ideal solution is telepresence, which makes people feel practically as if they’re sharing the same physical space regardless of distance.  

 

Our research at The Culture of CollaborationÒ Institute has shown that almost all highly-collaborative companies have integrated some form of real-time, interactive video into their operations. As I describe in The Culture of Collaboration book, Toyota uses a custom-designed visual communications system coupled with product lifecycle management and advanced computer-aided design tools that has become essential to its operations. The system links people at design facilities, plants, and at business partner sites and provides a rich virtual environment for developing and producing vehicles.

 

Two other areas involving collaboration that Akio Toyoda will likely re-emphasize:

1)     Making decisions based on long-term goals rather than on short-term developments

2)     Nemawashi or making decisions slowly by consensus

 

While collaborative culture is never about one person, Akio Toyoda is certainly one role model for collaborative leadership.